Boscov's inks new purchase agreement for substantially all assets

By Caroline Salls

Pittsburgh, Nov. 4 - Boscov's Department Store LLC has signed an asset purchase agreement for the sale of substantially all of its assets to a family group led by Albert Boscov and Edwin Lakin, according to a company news release.

In addition, Boscov's said it has formally terminated the previously announced purchase agreement with Versa Capital Management, Inc.

"On behalf of the company, I am very pleased that we have been able to sign an APA that has the support of the official creditors committee," Boscov's chairman and chief executive officer Ken Lakin said in the release.

"I believe that this agreement maximizes the value of our business and the return to our creditors. It also provides certainty about the future direction of our company.

"As we move toward the completion of our restructuring process, Boscov's will be well-capitalized and have the resources to build a stronger and more competitive business."

According to the release, the Boscov/Lakin families have had positive discussions regarding funding for the transaction and believe that they will soon be able to complete a formal financing agreement.

The company said it hopes to receive bankruptcy court approval and to close the transaction before the end of November.

A sale hearing is scheduled for Nov. 13.

Boscov's, a Reading, Pa.-based regional department store chain, filed for bankruptcy on Aug. 4 in the U.S. Bankruptcy Court for the District of Delaware. Its Chapter 11 case number is 08-11637.

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